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Churn in recruitment: not just a message of bad news
1. April 2015
Original presentation from
RDLC session
James Del-Gatto | Black Slate
Your Employer Brand
Churn, more than just bad news
2. ON THE MENU
Food for Thought Questions to stimulate
Churn • The secret KPI
• Bite-size lessons
Expert help • Here to help you with your toughest problem
• Case study
Food for Thought Questions to stimulate
Churn • The secret KPI
• Bite-size lessons
Expert help • Here to help you with your toughest problem
• Case study
Food for Thought Questions to stimulate
Churn • The secret KPI
• Bite-size lessons
Expert help • Here to help you with your toughest problem
• Case study
4. IMAGINE YOU ARE A ROOKIE
• If you had three offers on the table, one of which is your
brand, are you sure you’d take your brand’s offer?
• Can you sell your brand convincingly?
5. THE PROBLEM
Each new recruit will either cost you £60k – or has the
potential to earn you millions.
7. 2. CHURN
NAME DESTINATION STATUS
John
Mary
Sue
Stevie
Jack
Danny
Sarah
Yasmin
COMPETITOR
COMPETITOR
COMPETITOR
COMPETITOR
COMPETITOR
COMPETITOR
COMPETITOR
COMPETITOR
CANCELLED
DEPARTED
DEPARTED
DELAYED
DEPARTED
CANCELLED
DEPARTED
CANCELLED
8. BEST HEALTH-CHECK
BUSINESS HEALTH
Measuring overall business health is
difficult
CHURN RATE
Measuring churn is very simple and is symbolic
of so many factors – tangible and intangible
9. JUDGING LINE MANAGERS
• Judging and rewarding your line managers is a top
priority
• Their impact on churn is huge
• But how can you do this objectively and simply?
10. WHAT YOU ARE JUDGING
RECRUITMENT TRAING & DEV EARNINGS CULTURE
11.
12. MAKE CHURN A KEY KPI
• Measure churn
• Reward and consequences based on churn rates
• Make it part of your own bonus
• Ensure tension between growth and retention
Your churn is
60%!
13. COMPLEMENT CHURN STRATEGY
REF SCHEME
• Referral scheme at SThree No. 1 source of talent
• Best retention and performance
• And NO Rec 2 Rec fees!
• Success of your referral scheme, good sign of employee
engagement
15. HOW WE CAN HELP
REF SCHEME CHANGE MARKETING BRAND
16. CREDS: OYSTER PARTNERSHIP
Re-branded business and defined the whole brand both
internally and externally. Increased retention and quality of
new staff.
“James helped us transform our
business,
retention is up and better quality staff
are applying”
Jack Barton, MD of Oyster Partnership
17. SUMMARY
• High churn makes scaling and replicating your business
almost impossible
• Churn should be a top KPI
• But, there are methods to address it
Next steps
• If you have a problem with churn, and you don’t know
where to turn, then call Black Slate…
Notas do Editor
Good lunch, here’s for an after dinner treat a cure for recruitment and retention
1, food for thought
2. Churn secret KPI
3. But help is at hand
Let’ start thinking about this problem
Question: To get into the right mind-set, imagine you are a rookie, you’ve succeeded in getting three offers - which needs a decision by Monday morning. You want to spend two years learning to be consultant at one great company. And earning consistently well.
It’s your second job, you’ve checked out the offers, the careers pages, the Glassdoor reviews , checked in with friends on Facebook and it’s time to make a decision, three offers on the table and one of them is with your company.
Would you choose your business? I won’t embarrass you by asking for show of hands, feel free to nod or shake your head.
Well today I’ll run through my experience to help your business win the right talent.
Recruitment has a high churn of staff, at SThree we estimated each rookie consultant lost after recruitment and training that was lost before good billing cost us £60k +.
But of course the ones you get right can earn you millions
Is it any coincidence that most recruitment businesses stay small, and that the average churn rate in our sector is 55%.
I will share with you today my experience of the problem, in particular at SThree.
What can we do with it and about it.
BUSINESS HEALTH
Measuring overall business health is
Difficult
CHURN RATE
Measuring churn is very simple and is symbolic of so many factors – tangible and intangible
JUDGING LINE MANAGERS
Judging and rewarding your line managers is a top priority
Their impact on churn is huge
You want to know if your line managers are performing well, and beyond sales GP there are some important and trick dimensions
Some tangible get hold of and some less so
Bullet proof recruitment
Training and developing staff
Platform for earnings success
Great office culture
And the answer to all of these problems
Big unveil
Make Churn a key KPI
Measure churn, make it one of your top KPIs
Ensure line managers are Rewarded for good churn and there consequences for high churn rates
Make it part of your own bonus – S3 exec board were
Ensure tension between growth and retention
And to complement your retention strategy your ref scheme
Referral scheme at SThree No. 1 source of talent
Best for retention and performance
And NO Rec 2 Rec fees!
Success of your referral scheme, good sign of employee engagement
SThree’s success built on referrals
Scientific analysis – two profiles : grads with sales experience and referrals: because trust was so powerful
But you are busy managers some times even Superman needs help
I can help you build your employer brand internally and externally
Build your employer brand – craft and market your Employee value proposition - your promise to talent
Design, create, implement and communicate your referral scheme
Manage change
Marketing: clients, candidates, employees current and future
Case study
Oyster recruitment company of 30 staff working property private and public
Wanted to grow from 30 to 60
Developed their brand inside and out
Their message to market
Their staff handbook, even their recruitment service
Developing marketing function and content marketing
Recruitment and retention improved staff proud of their brand
Summary
High churn makes scaling and replicating your business almost impossible
Churn should be a top KPI
But, there are methods to address it
Next steps ( a team voice)
If you have a problem with churn, and you don’t know where to turn, then call Black Slate…
